(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Trump-linked stocks, Tesla jump

*

Market volatility gauge falls sharply

*

Russell 2000 futures soar

*

Futures up: Dow 3.09%, S&P 500 2.27%, Nasdaq 1.76%

(Updated at 8:27 a.m. ET/1327 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

Nov 6 (Reuters) - The S&P 500 and the Dow were set to

open at a record high on Wednesday, as Republican Donald Trump

won the 2024 U.S. presidential election in a remarkable comeback

four years after he was voted out of the White House.

Dow futures soared more than 1,300 points and those tracking

the benchmark index inched closer to the psychologically

significant 6,000 level.

Wall Street is anticipating the potential for lower taxes,

deregulation and a U.S. president who is quick to sound off on

everything from the stock market to the dollar.

The Republican's win powered a rally in Trump trades, as

U.S. Treasury yields surged, bitcoin hit a record high

and the dollar gained.

"There was relief that there was a quick and undisputed

election result, while the Trump victory was regarded as a big

positive for U.S. corporates due to his promises to slash taxes

and tear up regulations," said David Morrison, senior market

analyst, Trade Nation.

Futures tracking the small-cap Russell 2000 jumped

6.2% to their highest levels since early 2022 as

domestic-focused stocks expect to benefit from an easier

regulatory and tax regime, as well as be less exposed to likely

import tariffs.

The VIX, a measure of market volatility, dropped

sharply to its lowest since September. Until the results,

investors were bracing for several days of uncertainty over who

the winner of the presidency would be.

Stocks that are expected to perform well under a second

Trump term posted strong gains in premarket trading.

Trump Media & Technology Group ( DJT ) soared 30.7%, while

Tesla leapt 12.6% as top shareholder and CEO Elon Musk

has supported Trump in his electoral campaign.

Bank shares soared as yields rose and investors expected

them to benefit from less regulation. JPMorgan Chase ( JPM ) and

Bank of America ( BAC ) rose more than 7% each, while the SPDR

S&P Regional Banking ETF gained 7.8%.

Strong gains were also seen in shares of cryptocurrency

companies, energy firms and prison operators, while renewable

energy shares fell.

Dow E-minis were up 1,309 points, or 3.09%, S&P 500

E-minis were up 132 points, or 2.27%, and Nasdaq 100

E-minis were up 357.25 points, or 1.76%.

Wall Street analysts expect Trump's plans for restricted

immigration, tax cuts and sweeping tariffs to put upward

pressure on inflation and bond yields, while corporations could

benefit from his tax and regulatory policies.

"With the possibility of higher stimulus and reduced

restrictions or regulations on industries, we could end up

seeing the market post a strong rally between now and the end of

the year," said Sam Stovall, chief investment strategist at CFRA

Research.

Market focus turned to whether the Republican party could

maintain a majority in the House of Representatives after

gaining control of the U.S. Senate.

A "clean sweep", in which one party captures the presidency,

the House and the Senate would give Trump an easier route to

push through desired legislation.

Later in the day, the Federal Reserve will start its two-day

meeting where the central bank is expected to ease benchmark

interest rate by 25 basis points.